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Brett bought a house five years ago for $150,000. At that time he borrowed $140,000 from his bank. The house is now worth $162,000. The current value of his mortgage must be no higher than ________ for him to request termination of his PMI policy.
$126,360.
Once his equity has increased to 22% of the current market value, he can request that PMI be cancelled. He may request termination of PMI when his mortgage balance reaches $126,360 {$162,000 × (1 − 0.22)}.

Sagot :

KhiradAfaq

The current value of his mortgage must be no higher than $126,360 for him to request termination of his PMI policy.

What is mortgage value?

The appraised value of the property used to determine the mortgage value is determined by a reputable firm. It might not match the purchase-sale value. The mortgage value, which serves as the Bank's guarantee, is the benchmark used in the mortgage application and arrangement process.

Given:

Brett bought a house five years ago for $150,000.

At that time he borrowed $140,000 from his bank.

The house is now worth $162,000.

Once his equity has increased to 22% of the current market value he can request that PMI be canceled.

He may request termination of request when his mortgage balance reaches

162,000(1 - 0.22) = 162,000(0.78) = 126,360.

Hence,  the current value of his mortgage must be no higher than $126,360 for him to request termination of his PMI policy.

To know more about mortgage value, click on the link

https://brainly.com/question/22598793

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